Driving Utility-Scale Battery Deployment

In a Utility Dive brief, Guidehouse Insights discusses cost-effective storage-plus strategies

Electric utilities are expected to increase their investment in storage-plus renewable energy projects as the cost and risk associated with battery technology continue to decline.

Referencing findings from a Guidehouse Insights report, a new brief from Utility Dive highlights three factors influencing this change:

  • Storage-plus power purchase agreements (PPAs) are less expensive than the levelized cost of energy for combined cycle natural gas in the U.S.
  • Lithium-ion batteries are one of the main drivers in the growth of the utility-scale energy storage market.
  • There is a growing expectation that electric utilities increase their investment in storage-plus renewable energy projects as power purchase agreement prices continue to fall and adoption expands.

Due to the advancements in lithium-ion battery technology, PPA prices for projects combining energy storage and renewable resources are expected to continue declining as their adoption expands.

"In 2018, storage-plus made its first shift from the validation and first-mover adopters to diffuse adoption led by utilities," said Alex Eller, senior research analyst at Guidehouse Insights and one of the report's authors. "The accurate valuing and positioning of storage-plus by utilities will continue to drive the market in coming years."

Read the Utility Dive Article
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